Rajasthan reduces VAT on petrol; imposes new taxes to earn Rs 300cr
March, 27th 2012
The Rajasthan government today imposed new taxes to earn about Rs 300 crore but gave away about Rs 225 crore by reducing the VAT on petrol by 2 per cent in the budget for 2012-13. In his fourth budget, Chief Minister Ashok Gehlot has presented an annual plan size of Rs 33,500 crore with a fiscal deficit budget of Rs 8,650.60 crore for 2012-13.
In his budget speech, Gehlot announced reduction in VAT on petrol from 28 per cent to 26 per cent, from 14 per cent to 5 per cent in automobile parts, and similar reduction in wood glue used in handicrafts.
Taxes on machineries and parts which are used in energy generation from bio mass, solar and wind power, and waste paper have been exempted. Gehlot, who also holds the finance portfolio, reduced one-time tax on two-wheelers with 125cc power to 4 per cent from 8 per cent, and on two-wheelers with power more than 125cc to 6 per cent from 8 per cent. Along with this, he also gave a relief of 2 per cent in tax on non-transport four-wheelers worth over Rs 10 lakh. The chief minister also exempted tax on all activities which were covered under entertainment tax.
Showing commitment to the health of citizens, Gehlot increased 10 per cent VAT on pan masala and tobacco products. Gehlot increased 10 per cent of DLC rates of all kinds of lands, six per cent in goods tax for explosive, five per cent in yarn, 0.2 per cent stamp duty on agreements related with BOT related projects. Gehlot made an estimated surplus budget of Rs 396.62 crore in the next fiscal with total revenue receipt of Rs 63,146 crore. (More)